Fill and Sign the Watershed International Development Research Centre Form

FRESH WATER PURCHASE AGREEMENT (Exclusive Agreement between Landowner and Operator for use of Landowner's Water in Secondary Recovery Operations. Short Form) State: County: Seller: (Name and Address) Purchaser: (Name and Address) Effective Date: Seller and Purchaser, named above, desire to enter into an agreement whereby Seller will sell to Purchaser and Purchaser will buy from Seller fresh water ("Water") to be produced from the ____ formation under the lands described below and used by Purchaser for secondary recovery operations. It is the intention of Seller and Purchaser and the purpose of this Agreement to set out terms and provisions which will govern the sale of Water by Selle r to Purchaser. For adequate consideration and the mutual agreements, benefits, and obligations set forth below, Seller and Purchaser agree as follows: 1. Seller is the owner of the surface estate in the following land in the county a nd state above named (the "Lands"): (Description of Seller's Lands) In addition to ownership of the surface estate, Seller owns undivided mineral interests in the Lands, which interests are subject to an oil and gas lease (the "Lease) dated ____, recorded in Volume ____, page ____ of the ____ Records of the county and state named above, between Seller and (Lessee in Lease), which covers the Lands. All rights granted by this Agreement shall be subject to provisions of that Lease. 2. As owner of the surface estate, Seller owns the Water underlying the Lands. Seller agrees to sell to Purchaser and Purchaser agrees to buy from Seller that quantity of Water from the ____ formation underlying the Lands which Purchaser, in the exercise of its sole discreti on, desires to purchase. 3. Purchaser shall pay Seller, at Seller's address indicated above, monthly on or before the ____ day of the month following the month in which Purchaser removes Water from the Lands, the sum of $____ per barrel of Water removed. Purchaser shall provide Seller, upon Seller's written request, an accounting of the amount of Water removed and purchased by Purchaser. 4. In conjunction with the purchase of Water by Purchaser, Seller grants Purchaser the right, at its sole risk and expense, to drill wells on the Lands ("Wells") which in Purchaser's sole opinion are necessary for the production of Water to be used by Purchaser. In addition, Purchaser is granted the right to produce, transport, and deliver Water from existing water wells located on the Lands.Purchaser shall pay to Seller, at Seller's address, the sum of $____ for each Well dril led on the Lands after the Effective Date of this Agreement. This payment is inte nded to compensate Seller for rights granted to Purchaser in this Agreement and for any and all damages to the Lands or to Seller's personal property located on the Lands as a result of Purchaser's operations under this Agreement. No additional payments (other than the per barrel charges set forth in paragraph 3. above) shall be required by Purchaser to Seller. 5. Purchaser is granted the right, at its sole cost, risk and expense, to lay, construct, and install water lines, both surface and subsurface, for the purpose of transporting and delivering Water produced from Wells located on the Lands for use in secondary recovery operations on the Lands. Purchaser is also granted the right to construct and maintain surface faciliti es required for the production, storage, transportation and delivery of Water. Seller grants to Purchaser the easements and rights-of-way necessary for the construction, maintenance, and use of lines and Water wells. Purchaser shall have, full, free, and exclusive use of the surface for the purposes set out in this Agreement. 6 . All rights granted to Purchaser by Seller in this Agreement shall be exclusive to Purchaser. No agreements shall be made by Seller with third parties for the purpose of granting to a third party the right to purchase, produce, transport, or deliver Water from the Lands. 7 . The term of this Agreement shall be for ____ years from the Effective Date stated above and as long thereafter as Purchaser continues to use Water from the Lands. However, Purchaser may elect to terminate this Agreement by delivering to Seller within ____ days of the intended termination date, a written notice of such termination. 8. Purchaser has the right at any time prior to ____ days after the final termination of this Agreement to remove any and all equipment owned or placed by Purchaser on the Lands. 9. Purchaser has the right at any time to assign this Agreement and the rights granted, in whole or in part, without the consent of Seller. This Agreement and all of its terms and provisions shall extend to and be binding on Seller and Purchaser and to their respective heirs, personal representatives, successors, and assigns. Any amendment to this Agreement must be in writing, signed by Seller and Purchaser. This Agreement is signed by Seller and Purchaser as of the date of their acknowledgments below, but is effective for all purposes as of the Effective Date stated above. Seller Purchaser